People Costs
A Final customer buying from an intermediary of the product The Final customer is the one who makes the final decision on what product to buy and from which supplier to buy it. Most consumer products, and many industrial products, reach Final customers through Intermediaries.
Acquire Steps: Acquire steps include all activities the customer completes preceding the purchase of the product. These steps include the customer's efforts needed to identify and evaluate Intermediaries and travel to the Intermediary location.
2. Emotional:
B. Needs to avoid sources of anxiety
3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns
d. Savings of potential product vs. current solution
2. Savings on customer building block costs
a. People costs
NO. |
INDUSTRY SIC |
YEAR |
EXAMPLE |
1 | 5045 | 2004 | 80,000 resellers control two-thirds of the market. These local firms sell products and do things like unpack boxes, load software, plug in cables and set up computer networks. |
2 | 6162 | 2001 | MortgageRamp.com's Web service starts with someone needing a loan to buy a building. The potential buyer may hire a broker to find such a loan. The company is trying to combine its role as an intermediary and its role as a software seller. The company is developing a business called QuickRamp, which uses technology and agreements with a number of parties to the lending process, in order to speed up the loan application process. |
3 | 5311 | 2002 | SuperTargets seem to be missing because they are located in more urban areas where expenses are higher and customers won't drive as far, and, where rival grocery stores are more entrenched. The Target grocery centers are also spread out geographically. |
4 | 5399 | 2000 | By offering many product categories but just one or two brands within each, small stores like Dollar General can offset the size advantage held by mega stores. |